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| The changing nature of global agricultural markets, as a result of GM crop adoption and the success of GM crops in emerging economies, is likely to have implications for Australia’s agricultural exports. Australia has high adoption rates for GM cotton, but no other GM broadacre crops are commercially produced. Argentina, Brazil, India and China are rapidly adopting GM crops, and at a faster rate than in most developed economies. These emerging economies have become the largest GM crop producers, alongside the United States and Canada. The increase in GM crop adoption has increased on-farm productivity, farm incomes and reduced input use. Hence, these economies have increased their agricultural production and exports. Countries adopting GM crops now account for more than half of global exports of soybeans, corn, canola and cotton — the most dominant GM crops globally. Argentina and Brazil account for more than 60 per cent of global exports of soybeans and soybean products. China and India have also achieved dramatic productivity improvements through GM technologies. For example, India has moved from a net importer to a net exporter of cotton following the introduction of GM cotton varieties. Delaying the further uptake of GM crop adoption could result in Australia experiencing a loss of market competitiveness, forgone productivity gains and reduced export income. These impacts are partly determined by the extent and rate of GM crop adoption in emerging economies. Country specific factors, such as biotechnology policies and the varied performance of GM crops between countries, are also likely to influence these impacts. The aim in this report is to investigate the status of GM crop adoption in major emerging economies — Argentina, Brazil, India and China — and to quantify the potential implications for Australia of rapid adoption and development of GM crops in these economies. |